Tesla reports 14% decline in vehicle deliveries, marking second straight year-over-year drop

• Tesla reported over 384,000 vehicle deliveries in the second quarter, a 14% decline from a year ago and second straight year-over-year decline.
• Tesla shares are down 26% so far this year as of Tuesday's close, the worst performance among tech's megacaps.
• Tesla faces an onslaught of competition, especially from Chinese EV makers that sell newer and more affordable models, and political backlash against CEO Elon Musk.

Tesla reported over 384,000 vehicle deliveries in the second quarter, a 14% decline from a year ago, and the second straight quarterly drop.

Shares rose 5%.

The electric vehicle maker reported 443,956 deliveries and production of 410,831 vehicles during the same period last year.

Here are the key numbers:

• Total deliveries Q2 2025: 384,122 vehicles

• Total production Q2 2025: 410,244 vehicles

Wall Street analysts were expecting Tesla to report deliveries of around 387,000 according to FactSet.

Deliveries in the first quarter of 2025 dropped 13% from a year earlier to 336,681. Deliveries are the closest approximation of vehicle sales reported by Tesla but are not precisely defined in the company's shareholder communications.

The electric vehicle maker, headquartered in Austin, Texas, doesn't break out sales and production by model or region. However, the company said that it produced 396,835 of its most popular Model 3 and Model Y cars, with 373,728 combined deliveries for these models in the second quarter.

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Tesla faces an onslaught of competition, especially from Chinese EV makers that sell newer and more affordable models. In the first quarter, Tesla partly blamed its declining automotive sales on customers who had delayed their orders so they could get a refreshed version of the Model Y SUV, which began shipping in March.

There's also a political backlash against CEO Elon Musk, with waves of protests against Tesla weighing on the company's reputation and impacting sales.

Musk was President Donald Trump'sbiggest financial backer in last year's election, and endorsed Germany's far-right, anti-immigrant party AfD. He led the Trump administration's Department of Government Efficiency (DOGE) initiative to slash the size and capacity of federal agencies, including regulators tasked with oversight of his companies. Musk's formal role with DOGE ended in May.

His relationship with Trump quickly began to sour and, over the weekend, Musk reignited the feud, slamming the multitrillion-dollar tax-and-spending package backed by the president, and calling for the creation of a third political party.

Certain aspects of the bill could harm Tesla's solar and battery business, and would likely lower EV sales by roughly 100,000 vehicles per year by 2035, according to think tank Energy Innovation.

Meanwhile, Trump has threatened to potentially end other subsidies that benefit Musk's businesses, including Tesla and the aerospace and defense company SpaceX. He even threatened to deport Musk, a naturalized, U.S. citizen.

Also in Wednesday's announcement, Tesla reported 10,394 deliveries of its other models during the second quarter, including its steel Cybertruck. The angular pickup has been recalled eight times for a variety of hardware and software issues since Tesla began shipping it in November 2023.

Tesla shares slid more than 5% on Tuesday to close at $300.71. They're down 26% for the year, the worst performance among tech's megacap companies.

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